Eddy County has second lowest unemployment rate in NM

CARLSBAD >> Eddy and Lea counties lead the state's job market. The two Southeastern New Mexico counties continue to post the lowest unemployment rates in New Mexico, while the effects of the recession linger on for the rest of the state.

Statewide, New Mexico posted 7 percent unemployment in March, up from 6.7 percent in February and 6.9 percent year ago, according to data from the New Mexico Economic Research and Analysis Bureau. As a whole, the state's job growth dropped a tenth of a percent, representing a loss of 1,000 jobs.

However, Eddy County's numbers remain strong, reporting 30,411 people employed out of a 31,849 labor workforce and an unemployment rate of 4.5 percent. Only Lea County posted a lower rate of 4.4 percent.

"Eddy and Lea counties are the areas that are really, really booming because of the oil and gas industries and potash in Carlsbad," said Jim Peach, professor of economics and international business at New Mexico State University. "The western part of the state has not fully recovered from the recession."

According to Peach, the state's economy heavily depends on government, citing the examples of Los Alamos Laboratory, the state's three research universalities and military bases. Government employment suffered a loss of nearly 2,800 jobs since last year. Most of the losses were at the local and federal levels, according to the report.

"Government simply has not been a growth industry," he said. "The federal government is really important to New Mexico. There are some things that are out of the state control."

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Manufacturing and construction jobs also took a deep hit, declining by 1,900 and 1,400 jobs, respectively.

Eddy can count its blessings more than other parts of the state, but the local economy does run a gamble. For the area to continue to grow, the price of oil per barrel must hover around $85 to $90, Peach said.

Diversifying the local economy could help stability, and Peach noted that the potash and tourism is a big asset for the area. Also, with such a booming economy, other service job opportunities could open up.

"One of the things that really happens, and it's a real interesting thing, is that success brings success," Peach said.

However, a dark cloud for the local growth has been housing.

"The housing issue is the hardest thing to solve," he said, adding that banks are hesitant to lend money for housing during times of economic uncertainty.

"The question is how long the boom will last?" Peach said. "Banks are very conservative."

The largest employment increases came in retail trade, the report states.

Education would play a major role in the state's ability to lure 21st century companies. Peach said larger companies would not consider an area unless it offers a certain type of workforce.

"All these people need to be high school graduates, understand arithmetic, able to read and understand instructions and not have a criminal record," he said. "These companies are not going anywhere where they can't find that labor force."

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